Fawry plans to raise LE800M, explores U.S. listing

CAIRO - 20 January 2022: Fawry for Banking and Payment Technology Services S.A.E. announced Thursday its plans to raise LE 800 million of growth capital through a rights issue to existing shareholders, in addition to exploring a listing in the United States.

The company clarified in a filing to the Egyptian Exchange (EGX) that the proceeds will be used to fund a new chapter of expansions in financial services for both consumers and merchants. In addition to growing the Company’s offerings on MyFawry, the offering will help position the Company on the forefront of the Super App opportunity in Egypt. 

“Moreover, the Company will continue to invest in strengthening its position on merchant acquiring as well as supply chain solutions,” it added.

According to the company, a portion of the proceeds will also be directed towards executing the Company’s investment strategy, fast tracking innovation and supporting the budding ecosystem of high growth startups and fintech that complement Fawry’s offering through e-commerce, logistics, fintech services, insuretech among other verticals. 

The Company’s board of directors, including the directors representing the main shareholders of the Company (whether representing institutional investors or financial institutions), have approved the proposal to increase the capital to finance the company’s growth plans in the event that the necessary shareholder and regulatory approvals are obtained. 

The Company’s board of directors also approved the creation of an American Depositary Shares (“ADS”) program and is exploring a listing in the United States in connection with a potential SEC-registered secondary offering. 

The timing, number of ADSs and price of the proposed offering have not yet been determined. 

It elaborated that the proposed offering is subject to market conditions, shareholder and regulatory approvals, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering. 

In October 2021, Fawry chose Sudan, to pump its first investments outside Egypt, after announcing its success in concluding an investment deal with the platform "alsoug.com"; digital platform for classified ads and e-marketing in Sudan.

The deal came within the framework of Fawry's participation in the first announced round of financing venture capital in Sudan.

It indicated that the deal will contribute to the development of the new financial services technology platform "Cashi", which is affiliated with the "alsoug.com" platform by investing in a non-controlling minority stake in the holding company "alsoug.com - Cashi", which is the first immediate investment outside the Egyptian market.

Fawry represented the pivotal pillar of the success of the mentioned venture capital financing round, amounting to $5 million.

Fawry operates within the software & services sector focusing on data processing & outsourced services. Fawry is based in Cairo, Egypt and was established in June 2008.